Tata Stock Rallies To Near 52-Week High After Signing Deal To Set Up 28.125 MW AC Captive Solar Plant

Tata Group-backed integrated power firm, Tata Power traded near its 52-week high on Thursday after the company joined hands with Sanyo Special Steel Manufacturing India (SSMI) to set up of 28.125 MW AC (39.375 MWp) Captive Solar plant. This Tata stock has skyrocketed by over 23% on BSE in six months.

At the time of writing, Tata Power stock traded at Rs 249 apiece, up by 0.7% on BSE. The stock gained by nearly 1% with an intraday high of Rs 249.60 apiece.

At the current market price, the company's valuation is around Rs 79,564 crore.

The stock is just a couple of rupees away from hitting its 52-week high of Rs 252.75 apiece. The stock is currently up by nearly 37% from its 52-week low of Rs 182.45 apiece.

Tata Power signed a Power Delivery Agreement (PDA) with SSMI through its subsidiary, TP Alpha Limited (Special Purpose Vehicle).

The 28.125 MW AC captive solar plant is expected to meet "SSMI" green power requirements and contribute towards the United Nations Sustainable Development Goals.

As per the regulatory filing, the solar plant is
projected to produce an annual electricity of 61.875 Million Units ("MUs") which would meet the energy requirement of the steel manufacturing unit of "SSMI". The overall capacity of the Aachegaon facility is 120 MWp AC.

The project is scheduled to be commissioned by March 2024.

Ashish Khanna, CEO of Tata Power Renewable Energy Limited, stated, "Our partnership with Sanyo Special Steel Manufacturing India Pvt. Ltd. reflects our joint dedication to drive sustainable practices in the steel industry. These initiatives yield advantages like cost reduction, lower emissions, enhanced energy security, and alignment with sustainability targets. The government's prioritization of captive power projects, driven by their economic and environmental merits, highlights their significance for various industries."

Further, Dilipkumar Pachpande, Managing Director of Sanyo Special Steel Manufacturing India said, "This collaboration perfectly describes our commitment towards the clean and green energy solutions, which not only aligns with our goals towards climate change and sustainable development but also significantly benefits
the steel manufacturing unit by reducing CO2 emissions and costs, enhancing sustainability, and contributing to carbon neutral goals by producing "Green Steel"."

Further, Tata Power said that the project is in line with the objectives of the National Green Energy policy, emphasizing India's commitment to fostering a clean energy ecosystem.

It highlighted that the use of solar energy from this installation will help to reduce SSMI's carbon footprint by ~42,534 tonnes annually (reduction of carbon dioxide (CO2) emissions by ~42,534 tonnes annually).

Earlier, the company secured a Letter of Award (LoA) for a 966-MWRTC hybrid project, which marked one of the largest industrial Round-The-Clock (RTC) power purchase agreements within the group captive segment in the country.

With this project's capacity addition, the total renewables capacity of TPREL reaches 7,815 MW including 3,683 MW projects under various stages of implementation and its operational capacity is 4,132 MW, which includes 3,139 MW solar and 993 MW wind.